Pursuant to the amendments to the Financial Reporting Council Ordinance (the FRCO) which takes effect on 1 October 2019, the Financial Reporting Council (the FRC) is entrusted with the statutory duty to oversee the performance of the Hong Kong Institute of Certified Public Accountants (the HKICPA) of the following functions (specified functions) in respect of public interest entity (PIE) auditors:
- dealing with applications and other matters relating to the registration of PIE auditors;
- establishing and maintaining the PIE auditors register;
- setting continuing professional development requirements for registered PIE auditors; and
- setting standards on professional ethics, and auditing and assurance practices, for registered PIE auditors.
Pursuant to the FRCO, for performing the above oversight functions, the FRC may:
- request the HKICPA to provide information and periodic reports on the HKICPA’s performance of a specified function;
- conduct assessment on the HKICPA’s performance of a specified function;
- if satisfied that it is in the public interest to do so, give written directions to the HKICPA on the performance of a specified function with which the HKICPA must comply.
To facilitate the FRC in discharging its statutory oversight duty effectively as the independent auditor regulator of Hong Kong, the FRC signed a
Statement of Protocol on Oversight Arrangements with the Hong Kong Institute of Certified Public Accountants in 2019.